Money Market Funds and tax return

valiant24

Probably the wrong forum.  I'm sure you'll let me know!

I bought some  Royal London Short Term Money Market (Class Y) Accumulation Fund (RLCBTY) last April for £153,600 and sold it in December for £158,880 (so a "gain" of £5,280).

Do I declare that as a capital gain?

When I look at my Tax Certificate from iWeb (who don't supply capital gain info), under "Interest Distributions From UK Authorised Unit Trusts And Open Ended Investment Companies" I see 3 transactions for this security dated 28/6/24, 31/12/24 and 31/12/24 again totalling £6,773 as "Net Interest Payable".

Do I declare that as income?

Pretty sure I don't need to do both or I'd be paying double!

Thanks
V

GeoffTF

You have got yourself into deep water:

https://techzone.aberdeenadviser.com/public/investment/Guide-Taxation-of-Collectives

x44

CGT taxation of accumulation funds held outside an ISA gets very complicated.

Even worse if you hold them for a long time and have bought bits and sold bits here and there.

From what you have told us it seems that your net interest figures should be declared as income.

Because the fund accumulates its income you have actually made a capital loss as you would need to deduct the income amount accumulated (called notional income) from the sold value to find out what is was without the income component.

In your case the amount of income accumulated being more than the difference between the buying and selling price leads to an actual capital loss figure

ColdIron

You might like to read this thread

https://forums.moneysavingexpert.com/discussion/6498488/tax-on-money-market-fund-accumulation/p1